How good are your business relationships with your suppliers? Have you taken the time to cultivate and continuously improve them? Before my clients work with me, I hear it so often that their relationships with suppliers are okay but there is room for improvement.
So, you may be wondering, why is it so important to develop excellent business relationships with suppliers and how will this benefit my company?
Let’s take a look at some case studies and benefits received:
1. Food Manufacturing Company (called Smith Brothers for discussion purposes):
Marketing for this food manufacturer decided to run a big promotion on one of their grocery items without much notice. In order to get the necessary custom molded packaging needed to support the promotion, the supplier of this packaging would need to go into immediate production. The problems were that the supplier was currently producing a competitors custom packaging on the same production lines that were needed. Also, the competitor spent about twice the annual amount with the supplier than Smith Brothers did. Because Smith Brothers had a better relationship with the supplier than their competitor, the supplier immediately stopped producing the competitor’s packaging and produced the required packaging for Smith Brothers. This allowed the big marketing promotion to be fully supported.
2. Large Distributor (Called Williamson for discussion purposes):
The CPO at Williamson received an unexpected six figure check in the mail from one of their large suppliers. When the CPO asked the supplier what the check was for, the supplier stated that they were sharing the benefits of increased productivity with Williamson. After further investigation, Williamson realized that productivity at their supplier had actually decreased slightly. The CPO conveyed this to the supplier and again asked what the check was for. The supplier then stated that they had made some new agreements with other companies that had more favorable pricing than Williamson had. Based on the great relationship they had with Williamson, is why they decided to send the six figure check and maintain Williamson’s competitive advantage.
3. Consumer Goods Manufacturer:
The VP Procurement was in the middle of lengthy negotiations with a key supplier for some components used for producing one of their consumer goods items. The VP Procurement was eventually successful in negotiating long term price protection in the new agreement. Once the new contract was fully executed, the supplier told the VP Procurement that their excellent business relationship was the deciding factor for getting the long term price protection.
Let me help you!
If you want to know how to improve your supplier business relationships, save more on your cost of goods and services, and how to quickly and easily optimize your existing programs, click here to qualify for your complimentary strategy session with me to explore that…and to find out what you can do to have a results breakthrough.
I have a limited number of appointments available and request that only business owners and executive management who are ready to take the next step and serious about dramatically increasing their results apply for a time to talk.
Jack Trotsky is known by his clients as “The Purchasing Consulting Master” and “Cost Slasher.” His business owner and senior executive clients say he provides a high level of measurable cost savings, a competitive edge, and lower operating costs and increased profitability year over year. Working with Jack requires no out of pocket costs. Pay only for results – you pay nothing until he shows you what you can save. With a Fortune 500 pedigree at GE, ConAgra, and Hunt-Wesson, he launched his purchasing consulting firm in 2015 and has grown it into what is today PurchasingResults.com. Jack has a long history of transforming procurement processes, implementing and managing change while providing a competitive cost advantage for businesses across a variety of industries. He has spoken all over the US and internationally, at universities, as well as at training & employee development workshops and conferences. Jack’s clients include GE, Gate Gourmet, Retail Companies-various projects including negotiated leased space, Large Food Distributors, National Dry Ice Company, Consumer Packaged Goods Companies, Industrial Manufacturers, Service Companies, and Food Manufacturers. He currently resides in the Denver Metropolitan area.
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